Javid reassures over privatised GIB's green credentials

Business secretary Sajid Javid has announced that key legislation regulating the activity of the Green Investment Bank (GIB) will be have to be amended to facilitate the bank’s proposed privatisation, including an end to ministerial oversight.

The Enterprise and Regulatory Reform Act 2013 ensures that ministers control the bank’s governing principles, including a presumption that it fulfils a green remit.

“It is now clear that to achieve re-classification of GIB as a private sector enterprise, we need to remove the public sector controls imposed on the company by the Enterprise and Regulatory Reform Act 2013.

“Unless we remove these controls, there is a real risk the GIB would remain classified to the public sector even after a sale, so would remain subject to Government control over its capital raising. This unintended effect of the legislation has only become apparent in the course of our work to facilitate the GIB’s transition into the private sector.”

Javid pre-empts concern that this could mean a loss of focus on environmental schemes.

“I wish to make clear that the Government also wants and expects a privately owned GIB to continue this clear focus on green sectors – mobilising more private capital and further accelerating the transition to a green economy.

“It is clear from preliminary feedback that potential investors are interested in acquiring a stake in the GIB precisely because of its unique green specialism and its green-focused business plan.

“As part of any sale process, we would expect potential investors to confirm their commitment to the GIB’s green values and to set out how they propose to ensure these are protected.”

MPs on an environmental watchdog at Westminster have urged ministers not to go ahead with the proposed privatisation of the Green Investment Bank (GIB) unless the bank’s objectives are protected and strengthened.

Environment secretary Michael Gove has launched draft legislation to set up an independent environmental watchdog which will “hold Government and public bodies to account” after Britain leaves the EU, including scrutinising new targets on waste.

Chancellor Philip Hammond’s spring statement has announced a review into infrastructure funding and how the UK can decarbonise its economy while building essential large-scale facilities and projects, including waste plants.

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